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INDUSTRY ORIENTED DISSERTATION PROJECT REPORT

ON

‘THE CORPORATE SOCIAL RESPONSBILITY OF LARSEN &


TOURBOR’
SUBMITTED

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE


DEGREE OF

MASTER OF MANAGEMENT STUDIES


(FINANCE)
UNIVERSITY OF MUMBAI
SUBMITTED BY
POOJA JAGDISH PAWAR
ROLL NO: 170042
(2017-19)

UNDER THE GUIDANCE OF


DR. SEEMA UNNIKRISHNAN

DR. G.D.POL FOUNDATION


YMT COLLEGE OF MANAGEMENT
NACC ACCREDITED
INSTITUTIONAL AREA, SECTOR – 4, KHARGHAR, NAVI MUMBAI

DECLARATION
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This is to certify that the Industry Oriented Dissertation Project titled as “THE
CORPORATE SOCIAL RESPONSBILITY OF LARSEN & TOURBOR” submitted by
“POOJA JAGDISH PAWAR” in partial fulfillment of the requirements for the degree of
Master in Management Studies (Finance) of University of Mumbai during 2017-2019 is
his/her original work & does not form any part of the project undertaken previously to the
best of our knowledge.

Place :

Date :

Signature of Student

CERTIFICATE

2
This is to certify that the Industry Oriented Dissertation Project titled as “THE
CORPORATE SOCIAL RESPONSBILITY OF LARSEN & TOURBOR”
submitted by “POOJA JAGDISH PAWAR” in partial fulfillment of the
requirements for the degree of Master in Management Studies (Finance) of
University of Mumbai during 2017-2019 is his/her original work & does not
form any part of the project undertaken previously to the best of our knowledge.

DR.SEEMA UNNIKRISHN DR. SWATI PADOSHI


FACULTY GUIDE DIRECTOR

DATE

ACKNOWLEDGEMENT

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Preservation inspiration and motivation have always played a key role in a in
the success of venture in the present world of competition and success
understanding of theoretical and practical working makes you aware about the
real business willingly be prepared this particular project. I would like to thank
our faculty DR.SEEMA UNNIKRISHNAN to give me the opportunity to do
this project The successful completion of this project was unique experience for
me I achieved better knowledge about A CORPORATE SOCIAL
REASPONSBILITY IN L&T which I gained by doing this project was
essential as is turning point of my career this project is being submitted which
content detailed analysis of the research undertaken by me.

Miss. Pooja jagdish Pawar

EXCUATIVE SUMMARY

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L&T has a CSR vision to uphold human values with sustainable community
development. The development will facilitate equal opportunities to everyone
irrespective of caste, class colour , gender and religion, leading to self reliance.
L&t aspires to be known to society as a group which cares and seeks to build up
capacities of the underserved. Marginalized and disadvanged by working
together, with and for them. The aspiration includes all aspects of human
development for a dignified living. Social infrastructure is dispensable for
progress. L&t as India leading builder of major infrastructure projects that will
contribute to quality of life the school hospital skill training ,institute , water,
supply& distribution and sanitation facilities.

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PART 1

CHAPTER PAGE
PARTICULARS
NO. NO.
6
COVER PAGE I
ACKNOWLEDGEMENT II
COMPANY CERTIFICATE III
CERTIFICATE IV
DECLARATION V
EXECUTIVE SUMMARY VI
1. PART - I
1.1 Introduction 8-10
1.2 Need of the Project 11
1.3 Objectives of the Study 11
1.4 Research Methodology 12
1.5 Literature Review 13-14
1.6 Expected Scope and Outcome of the Project 15
1.7 Limitation of the Project 15
2. PART - II
2.1 Company Profile 17-29
3. PART – III
3.1 Theoretical Background of the project 31-52
3.2 Findings 53
3.3 Recommendations 54
3.4 Conclusion 55
3.5 Bibliography 56

CHAPTER 1

1.1 Introduction

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Meaning of CSR

Corporate social responsibility (CSR, also called corporate conscience, corporate


citizenship, social performance, or sustainable responsible business) is a form
of corporate self-regulation integrated into a business model. CSR policy functions as a built-
in, self-regulating mechanism whereby business monitors and ensures its active compliance
with the spirit of the law, ethical standards, and international norms. The goal of CSR is to
embrace responsibility for the company's actions and encourage a positive impact through its
activities on the environment, consumers, employees, communities, stakeholders and all other
members of the public sphere.

The term "corporate social responsibility" came into common use in the late 1960s and early
1970s after many multinational corporations formed the term stakeholder, meaning those on
whom an organization's activities have an impact. It was used to describe corporate owners
beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic
management: a stakeholder approach in 1984.[2]Proponents argue that corporations make
more long term profits by operating with a perspective, while critics argue that CSR distracts
from the economic role of businesses. Others argue CSR is merely window-dressing, or an
attempt to pre-empt the role of governments as a watchdog over powerful multinational
corporations.

CSR is titled to aid an organization's mission as well as a guide to what the company stands
for and will uphold to its consumers. Development business ethics is one of the forms
of applied ethics that examines ethical principles and moral or ethical problems that can arise
in a business environment. ISO 26000 is the recognized international standard for CSR.
Public sector organizations (the United Nations for example) adhere to the triple bottom
line (TBL). It is widely accepted that CSR adheres to similar principles but with no formal
act of legislation. The UN has developed the Principles for Responsible Investment as
guidelines for investing entities.

Definition Of CSR

The World Business Council for Sustainable Development in its publication Making Good
Business Sense by Lord Holme and Richard Watts, used the following definition.

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Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large

Criticisms Of CSR

Explore some of the criticisms of CSR, including the lack of regulation, misuse as a
marketing ploy and abuse of power by decision making companies in the social domain.

Milton Friedman wrote in his famous 1970’s article in The New York Times Magazine, that
“the one and only social responsibility of business, is to increase profits for shareholders.”
Management’s fundamental goal is to increase value for its shareholders and not any single
stakeholder such as solely the socially responsible.

It then begs the question, what purpose does corporate social responsibility (CSR) serve in
today’s world, if any at all? Some of the criticisms thrown at corporate social responsibility
CSR include the lack of regulation, misuse as a marketing ploy and abuse of power by
decision making companies in the social domain.

Lack of Regulation of CSR

Corporate Social Responsibility is voluntary corporate action and goes beyond simple
compliance with domestic regulations and laws. Many companies are subject to national
regulation of Corporate Social Responsibility in certain specific geographic areas and at a
global level the Organization for Economic Co-operation and Development OECD, the
International Labor Organization ILO and the United Nations UN have all attempted to
regulate CSR through some Framework for Corporate Social Responsibility. Consequently,
due to this voluntary nature and the lack of formal regulation, the information that companies
provide to stakeholders such as investors and consumers is not standardized. As such, it is
often not possible to compare CSR performance on a detailed level, especially that of
multinationals across geographic borders.

CSR is Misused as a Marketing Ploy

he plethora of CSR awards given out to companies reveals an appalling fact – some
companies whose very existence is considered to be socially irresponsible are being
recognized for performing some socially responsible acts – never mind that the socially
irresponsible behaviors substantially overwhelm the few socially responsible acts. Case in
point: British American Tobacco, which was attacked after it won a United Nations

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Environment Program / Sustainability reporting award for its annual social report. Critics
were quick to point out that winning a CSR award may well be a tool to deflect some
criticisms against a socially irresponsible outlook of selling products that cause known
damage

Abuse of Power Through CSR

Due to the voluntary nature and the lack of formal regulation of corporate social
responsibility, CSR inadvertently places even more power in the hands of decision-making
companies. This is because companies are given liberty to shape and define corporate social
responsibility as they deem fit and how to practically apply CSR, increasing the risk of
further opportunity for abuse of power.

For example, Tesco, the UK supermarket chain, shed workers in its Manchester site in 2006
whilst trumpeting its CSR policy, being: “One of our most important values is to treat people
how we would like to be treated. We try to achieve this by being a good employer and by
playing our part in local communities. People tell us that they want use to use our size and
success to be a force for good.”

1.2 NEED OF THE PROJECT


To understand the concept and scope of corporate social responsibility and getting an insight
in CSR Initiatives of L&T

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1.3 OBJECTIVE IF THE STUDY

1. To understand the CSR activity in L&T.

2. To understand the benefits Corporate social responsibility.

3. To understand the facility provide to people on behalf of csr activity.

1.4 RESEARCH METHODOLOGY

The data that has been collected from various sources and presented in the form of
materialistic information is known as research methodology. Research methodology is a
systematic way to solve any research problem. It may be understood as a science of studying
how research is done scientifically.
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Methodology Adopted For Study through:-

➢ Books

➢ Website

➢ News Paper

➢ Magazine

➢ Previous Research

DATA THAT IS BEEN USED IS “SECONDARY DATA”.

1.5 LITREATURE REVIEW

Corporate Social Responsibility (CSR) is often defined as an organization’s obligation to


consider the interests of customers, employees, shareholders, communities, and ecological
considerations in all aspects of their operations. Organizations justify their existence in the
eyes of their multiple stakeholders by participating in to CSR activities. CSR is a relatively
new management concept. Arguably one of the key reasons for the development of the
concept was the lack of perceived balance between the power enjoyed by businesses and the
responsibility exercised by them. (Elaine Cohen & Sully Taylor, www. shrm.org/foundation)
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There is a relationship between CSR and company performance outcomes where Human
Resources performs a strategic role and performance is evaluated, have better developed CSR
policies so there is an impact of CSR on the cooperative behaviors of employees and
financial performance outcomes. CSR orientation enhances employee satisfaction,
motivation, and commitment. Organizations are doing in achieving their goals through their
Vision / mission statements.

(D Wood,1991)

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship,
social performance, or sustainable responsible business/ Responsible Business) is a form of
corporate self-regulation integrated into a business model. (D Wood,1991)

(Göztaş, Alemdar & Koker, 2008: 95).

Various definitions can be made for corporate social responsibility. At its most general, we
can say that CSR is the management of an institution by its executives or partners so that due
attention is paid to society’s expectations, needs and requests, thereby acting in accordance
with individual and social benefits.

(Kotler& Lee, 2006) In their book “Corporate Social Responsibility”, Kotler and Lee define
it as an obligation undertaken for improving social welfare through the support of corporate
resources

(Oury, 2007: 3)Large and small businesses are becoming increasingly conscious of the
importance of corporate social responsibility (CSR). Corporations can no longer afford to
focus solely on profit, they are responsible for making decision that must be ethically and
socially acceptable to all stakeholders involved, including wider communities and the
environment, as well as shareholders.

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1.6 EXPECTED SCOPE OF THE PROJECT

Scope of the project is limited to college use only for information purpose.

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1.7 LIMITATIONS OF THE PROJECT

1. Data is limited to only L&T company.

2. The collected data is secondary data.

3. Due to lack of time management.

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PART II

CHAPTER 2

2.1 COMPANY PROFILE

HISTORY

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The evolution of L&T into the country's largest engineering and construction organization is
among the most remarkable success stories in Indian industry.

L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-
Larsen and Soren Kristian Toubro. Both of them were strongly committed to developing
India's engineering capabilities to meet the demands of industry.

Henning Holck-Larsen Soren Kristian Toubro

(4.7.1907 - 27.7.2003) (27.02.1906 - 4.3.1982)

Beginning with the import of machinery from Europe, L & T rapidly took on engineering and
construction assignments of increasing sophistication. Today, the company sets global
engineering benchmarks in terms of scale and complexity.

Early Days
Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark, would not have
dreamt, as they were learning about India in history classes that they would, one day, create
history in that land.

In 1938, the two friends decided to forgo the comforts of working in Europe, and started their
own operation in India. All they had was a dream and the courage to dare.

Their first office in Mumbai (Bombay) was so small that only one of the partners could use
the office at a time!

In the early years, they represented Danish manufacturers of dairy equipment for a modest
retainer. But with the start of the Second World War in 1939, imports were restricted,
compelling them to start a small work-shop to undertake jobs and provide service facilities.

Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis
forced the partners to stand on their own feet and innovate. They started manufacturing dairy
equipment indigenously. These products proved to be a success, and L&T came to be
recognised as a reliable fabricator with high standards.

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The war-time need to repair and refit ships offered L&T an opportunity, and led to the
formation of a new company, Hilda Ltd., to handle these operations. L&T also started two
repair and fabrication shops - the Company had begun to expand.

Again, the sudden internment of German engineers (because of the War) who were to put up
a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area
where their capability became well respected.

The Journey
In 1944, ECC was incorporated. Around then, L&T decided to build a portfolio of foreign
collaborations. By 1945, the Company represented British manufacturers of equipment used
to manufacture products such as hydrogenated oils, biscuits, soaps and glass.

In 1945, L&T signed an agreement with Caterpillar Tractor Company, USA, for marketing
earthmoving equipment. At the end of the war, large numbers of war-surplus Caterpillar
equipment were available at attractive prices, but the finances required were beyond the
capacity of the partners. This prompted them to raise additional equity capital, and on 7th
February 1946, Larsen & Toubro Private Limited was born.

Independence and the subsequent demand for technology and expertise offered L&T the
opportunity to consolidate and expand. Offices were set up in Kolkata (Calcutta), Chennai
(Madras) and New Delhi. In 1948, fifty-five acres of undeveloped marsh and jungle was
acquired in Powai. Today, Powai stands as a tribute to the vision of the men who transformed
this uninhabitable swamp into a manufacturing landmark.

Public Limited Company


In December 1950, L&T became a Public Company with a paid-up capital of Rs.2 million.
The sales turnover in that year was Rs.10.9 million.

Prestigious orders executed by the Company during this period included the Amul Dairy at
Anand and Blast Furnaces at Rourkela Steel Plant. With the successful completion of these
jobs, L&T emerged as the largest erection contractor in the country.

In 1956, a major part of the company's Bombay office moved to ICI House in Ballard Estate.
A decade later this imposing grey-stone building was purchased by L&T, and renamed as
L&T House - its Corporate Office.

The sixties saw a significant change at L&T - S. K. Toubro retired from active management
in 1962.

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The sixties were also a decade of rapid growth for the company, and witnessed the formation
of many new ventures: UTMAL (set up in 1960), Audco India Limited ( 1961), Eutectic
Welding Alloys (1962) and TENGL (1963).

Expanding Horizons
By 1964, L&T had widened its capabilities to include some of the best technologies in the
world. In the decade that followed, the company grew rapidly, and by 1973 had become one
of the Top-25 Indian companies.

In 1976, Holck-Larsen was awarded the Magsaysay Award for International Understanding in
recognition of his contribution to India's industrial development. He retired as Chairman
in 1978.

In the decades that followed, the company grew into an engineering major under the guidance
of leaders like N. M. Desai, S.R. Subramaniam, U. V. Rao, S. D. Kulkarni and A. M. Naik.

Today, L&T is one of India's biggest and best known industrial organisations with a
reputation for technological excellence, high quality of products and services, and strong
customer orientation. It is also taking steps to grow its international presence.

For an institution that has grown to legendary proportions, there cannot and must not be an
'end'. Unlike other stories, the L&T saga continues.

L & T’s SIGNATURE OF EXCELLENCE IS EVIDENT ON


Hydrocarbon projects executed in India, the Middle East and South East Asia. Power projects
executed in India, the Gulf and Sri Lanka. The world's largest coal gasifier made in India and
exported to China. The world’s biggest EO reactor for a petrochemical complex in the Gulf .
The world’s largest FCC regenerator for a refinery Asia’s highest viaduct. The world’s
longest limestone conveyor L&T played a critical role in building India’s first nuclear
powered submarine L&T played a major role in India's maiden moon mission.

GLOBAL PRESENCE

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L & T has a global presence. A thrust on international business over the years has seen
overseas revenue growing steadily.

The company has manufacturing facilities in India, China, Oman and Saudi Arabia.

Customers include global majors in over 30 countries.

GLOBAL PRESENCE

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NATIONWIDE NETWORK

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Human Resources

L&T' s employment policies and systems radiate from a single principle - L&T believe in
people. People are their most valued asset - their core strength. L&T have, therefore, created
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a 'climate' which is distinctive in industry. Employees gain a level of freedom which provides
security, satisfaction and, most importantly, a sense of professional fulfillment. At L&T,
learning is a continuous process. Human Resources Development Department offers training
programmes for employees right through their career. A good blend of skill development,
behavioral and core programmes provide stimulus for growth and career development.
Courses are designed to keep employees in touch with the latest trends in management.
Emphasis is laid on creativity, innovation, achievement motivation for excellence,
empowerment, augmenting communication and interpersonal skills, developing initiative and
leadership qualities and providing knowledge of computer applications. The compensation
package offered by L&T compares favourably with respective industries in which L&T
operate.

BOARD OF DIRECTORS
"The company that we run has a strong heritage of professionalism that places the highest
value on merit and integrity. In the 70th year of the existence of L&T, all the directors on our

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board are conscious of our responsibility in transforming the organisation to make it truly
world class, to ensure its continued long term success and growth."

- A. M. Naik, Chairman & Managing Director

A.M. Naik K. Venkataramanan

Chairman & Managing Director Whole-time Director & President

(Engineering & Construction Projects)

V. K. Magapu M. V. Kotwal

V. K. Magapu M. V. Kotwal

Whole-time Director & President Whole-time Director & President


(IT, Eng. Services & Corporate Initiatives) (Heavy Engineering)

Ravi Uppal S. N. Subrahmanyan

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Whole-time Director & President hole-time Director & Sr. EVP
(Power) (Construction)

Mission Statement:

The Mission: L&T Precision Corporation's mission is to increase our share of the precision
metal fabrication market and be a leader in this industry.

The Philosophy: L&T Precision Corporation's philosophy is to achieve excellence in our


relations with...

Customers By consistently producing satisfaction through a high level of service,


product quality, and on-time delivery at an acceptable price/value
relationship.

Employees By providing equal opportunity, a climate conducive to a high degree


of personal development, a high degree of economic satisfaction, and
an opportunity for personal involvement in the company's endeavors.

Vendors By dealing fairly and ensuring mutual respect through full disclosure
of the objectives and relationships.

Social Environment By recognizing our social and local community responsibility and
encouraging positive involvement

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VISION

The L&T vision reflects the collective goal of the company. It was drafted through a large
scale interactive process which engaged employees at every level, worldwide.

AWARDS

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Major Awards received by L & T in 2011

Mr. A.M. Naik, CMD, was ranked the ‘Best CEO’ in the Industrials segment in Asia.

Mr. A.M. Naik, CMD, L&T, was ranked the ‘Best CEO’ in the Industrials segment in Asia in
the All Asia (excluding Japan) Investor Relations Perception Study conducted by the
prestigious Institutional Investor magazine. (July 14, 2011)

Mr. Y.M. Deosthalee, L&T CFO, wins India’s Best CFO Award

Mr. Y.M. Deosthalee, L&T ’s Chief Financial Officer and Member of the Board, won the
award for ‘India’s Best CFO’ in the annual survey organised by the leading business
publication Business Today and Yes Bank. (July 4, 2011)

L&T Ranks among Top Three ‘Most Attractive Employers

L&T was ranked among the top three in an online research carried out by HR services
company, Ma Foi Randstad. The award recognises the country’s best corporate houses to
work for among 150 of the largest employers, based on the opinion of over 10,000 potential,
as well as, employed workforce in India. (June 29, 2011)

L&T Ranked Among Top 5 ‘Thought Leader Brands’ in India

L&T was ranked among the Top 5 in an Index of Thought Leaders in India published by a
London-based communications agency. In the Index, L&T ranks higher than several global
brands. The research was conducted by research consultancy firm GlobeScan for the Index of
Thought Leaders 2011. (June 24, 2011)

L&T wins Green Business Leadership Award

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L&T’s sustainability practices won another accolade as it bagged the Financial Express-EVI
Green Business Leadership Award for 2010-11 in the large corporate (engineering) segment.
The event was organised jointly by The Financial Express and Emergent Ventures India – an
integrated climate change and clean energy firm. (June 7, 2011)

L&T’s CSR Honoured with Golden Peacock Award 2011

L&T’s Corporate Social initiatives (CSI) were yet again acknowledged and applauded – this
time with the prestigious ‘Golden Peacock Global CSR Award 2011’. L&T was selected in
the category of ‘Top Performer Award’ for its accomplishment in the large enterprise
segment. The award honours the Company’s commitment towards community welfare and
social development. (April 30, 2011)

L&T bags ’India Shining Star Award’ for Outstanding CSR

L&T bagged the ’India Shining Star CSR Award’, instituted by the Wockhardt Foundation,
for Outstanding CSR in the sector for companies engaged in heavy engineering. (February
19, 2011)

L&T wins Award for ’Company with Best CSR & Sustainability Practices-2011

L&T’s CSR initiatives were again in the limelight as it bagged the award for ’Company with
the Best CSR and Sustainability Practices’ by the Asian Centre for Corporate Governance and
Sustainability. The award was presented at the 11th International Conference of the Centre in
Mumbai on February 11, 2011.

L&T wins Top Honours in Businessworld’s ’Most Respected Company - 2011’ Rankings

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Leading business magazine, Businessworld’s rankings of ’Most Respected Companies’ saw
stellar honours for L&T. In the sector-wise survey, L&T was ranked ’India’s Most Respected
Company’ in the Infrastructure category. In the overall rankings, L&T emerged second.

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PART 3

3.1 THEROTICAL BACKGROUND

Past eras have shown acts of charity, fairness and stewardship, such as the medieval chivalry
and Scholastic view on pricing, the aristocracy’s noblesse oblige, the early 20th century

30
paternalistic industrialists and the contemporary ways of corporate (and private) sponsoring
of arts, sports, neighbourhood developments, etceter

In academic literature, various author have referred to a sequence of three approaches, each
including and transcending one other showing past responses to the question to whom an
organization has a responsibility.

According to the shareholder approach, regarded by Quazi and O’Brien (2000) as the
classical view on CSR, “the social responsibility of business is to increase its profits”
(Friedman, 1962). The shareholder, in pursuit of profit maximization, is the focal point of the
company and socially responsible activities don't belong to the domain of organizations but
are a major task of governments. This approach can also be interpreted as business enterprises
being concerned with CSR “only to the extent that itcontributes to the aim of business, which
is the creation of long-term value for the owners of the business” (Foley, 2000)

The stakeholder approach indicates that organizations are not only accountable to its
shareholders but should also balance a multiplicity of stakeholders interests that can affect or
are affected by theachievement of an organization's objectives.(Freeman, 1984) According to
the societal approach, regarded as the broader view on CSR (and not necessarily the
contemporary view), companies are responsible to society as a whole, of which they are an
integral part.

They operate by public consent (licence to operate) in order to “serve constructively the
needs of society - to the satisfaction of society”The philanthropic approaches might be the
roots of CS, but the different approaches to corporate responsibility clearly show that CSR is
a new and distinct phenomenon. Its societal approach especially appears to be a (strategic)
response to changing circumstances and new corporate challenges that had not previously
occurred. It requires organizations to fundamentally rethink their position and act in terms of
the complex societal context of which they are a part. This is anew perspective.

Larsen & Toubro Limited (L&T) is a technology, engineering, construction and


manufacturing company. It is one of the largest and most respected companies in India's
private sector.

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More than seven decades of a strong, customer-focused approach and the continuous quest
for world-class quality have enabled it to attain and sustain leadership in all its major lines of
business.

L&T has an international presence, with a global spread of offices. A thrust on international
business has seen overseas earnings grow significantly. It continues to grow its overseas
manufacturing footprint, with facilities in China and the Gulf region.

The company's businesses are supported by a wide marketing and distribution network, and
have established a reputation for strong customer support.

L&T believes that progress must be achieved in harmony with the environment. A
commitment to community welfare and environmental protection are an integral part of the
corporate vision.

Corporate Social Responsibility

Beyond the corporate objectives of achieving growth and profitability, L&T is conscious of
its larger social obligations. The Company’s efforts have been widely recognized.

Sustainability:

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L&T’s Construction Division is committed to environmental and societal well being. In tune
with the call of the environmentalists all over the globe, L&T is well on its way in
implementing several sustainability measures at many of its projects for preserving and
sustaining the future of life on planet earth. Sustainability has been an integral part of L&T’s
operations and project execution success.

L&T’s commitment aims at supporting our customers in meeting government, community,


and financing requirements for sustainability, thereby creating value for all stakeholders. At
L&T, leadership in sustainability is more than just a responsibility; it is a privilege and
business opportunity too.

Realizing the importance of this, L&T has put in place a Sustainability Council to drive
initiatives in line with company’s sustainability policy, to take it forward and cascade
it down the line for embracing the same with full vigour and enthusiasm.

HEALTH

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L&T's participates in building a healthy community through continuing initiatives in several
areas of healthcare, with a focus on mother & child care and HIV/AIDS awareness. All L&T
locations, including construction sites, have in-house AIDS awareness programs. Five
additional mother & child care centers were set up in 2006-07. In partnership with local
NGOs, these centres benefit children of commercial sex workers, street children and tribal
communities.

Through health care centres and regular family camps L&T organizes health checkups,
provides gynaecology and laboratory facilities, carries out free cataract surgeries and intra
ocular lens implants, and helps maintain health data for children.Supply of equipment and aid
for orphanages and physically challenged children, periodic counseling to combat rampant
alcoholism, awareness camps on childcare, reproductive health, sanitation, dental check-up,
provision for safe drinking water, cancer awareness etc. are other healthcare activities that
L&T supports.

EDUCATION

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L&T's diverse and sustained programmes in education provide underprivileged children with
learning opportunities through supply of educational materials, teaching aids, recreational
tools and up scaling school infrastructure. L&T also enriches children's lives through
programmes like summer camps, maths coaching, providing facilities like science
laboratories, scholarship to deserving students, etc.

The vocational training institutes of the Larsen and Toubro Public Charitable Trust, provide
local communities with skill-based training in Formwork, Masonry, Agro Mechanics,
Electricals, Fabrication, Welding and Housekeeping.Various diploma courses are also
conducted by L&T Institute of Technology for the children of employees. L&T has developed
training modules in local languages in six centres across India for imparting skills sets in
construction. L&T Training Centers provide courses for improving the standards of electrical
engineering practices and for upgrading knowledge of maintenance, repair and welding.

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Environment

Global warming: at L&T, we have always been conscious of the need to maintain harmony
with the environment. We continuously seek newer environment-friendly approaches in all
our operations – energy conservation, exploring alternative sources like wind and solar
energy, waste water reduction, etc.

The Zero Discharge approach of the Powai Campus saves over 350,000 litres water everyday
through water treatment and recycling. More than 13,500 trees have been planted in different
L&T campuses in the last year, and an additional 4,000 saplings were distributed among local
communities

Response To Natural Calamities

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L&T and its employees have provided relief measures during natural calamities like
earthquake and floods. L&T has assisted in disaster relief through employee and corporate
donations, employee volunteering, supply of construction material, medical and food
supplies. After the floods in Surat (Gujarat-India), L&T played a major role in road-clearing
operations, organising medical camps, and supply of food, water, clothes and other relief
materials.

Employee Volunteering

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L&T encourages employees to volunteer for CSR activities, resulting in a self-driven
approach while retaining consistency. L&T employees and the ladies clubs formed by their
families at different locations, serve their communities by investing personal resources and
time.

From taking initiatives in building the next generation of productive citizens, empowering
women, paying regular visits to old age homes and orphanages, to organising blood donation
camps, our employees have always believed in truly making a difference to the world in
which they live.

Free eye screening camp by L & T, Aravind Eye Hospital


L&T Construction Workshops, Neervalur near Kancheepuram, Aravind Eye Hospital,
Pondicherry, and Prayas Trust, Chennai, jointly organized a free eye screening camp at
Pachaiyappa High School, Kancheepuram on Saturday, September 23, 2006

More than 600 people from Kancheepuram and neighbouring villages benefited by the camp.
A team of doctors and paramedical staff under the guidance of Dr. R.D. Ravindran, Chief
Medical Officer, Aravind Eye Hospital, screened the patients and L&T provided spectacles
on the spot free of cost to nearly 200 of

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the patients. About 100 people, who needed surgical intervention, were taken to Aravind Eye
Hospital at Pondicherry where surgery was carried out free of charge. After surgery, the
hospital authorities transported the patients back to Kancheepuram.

The camp was inaugurated at a simple function where Mr. K. Rajaraman, District Revenue
Officer of Kancheepuram, Mr. Kumar Joint Director, Public Health, Kancheepuram District,
Dr. Ravindran, Mr. P Asokan, Headmaster, Pachaiyappa High School, Mr. D.R. Ray, Vice
President, L&T, Mr. K. Asok Kumar, Head-ECC Workshops, Mr. V.S. Ramana, Head-
Corporate Communications, L&T Construction, and Mrs. Chitra Rangaswami, President,
Prayas Trust, were present. L&T and Aravind Eye Hospital announced that they would
continue to work together and hold such camps for the benefit of the poor and needy.

L & T Institute of Technology

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L&T Institute of Technology (LTIT) is a diploma polytechnic college in India. It is located
in Powai, a suburb of Mumbai. It is run & managed by Larsen & Toubro, Affiliated to
MSBTE and Approved by AICTE and offer courses leading to undergraduate (Bachelor)
degrees in Engineering.

The Institute has its own building with over 5000 sq. mts. built up area. It accommodates a
complete mechanical workshop, drawing hall, audio-visual room, library, administrative
wing, laboratories, classrooms and also a playground.

L&T I'PM AND PROJECT MANAGEMENT INSTITUTE (PMI), USA

L&T I’PM is a Registered Educational Provider (R.E.P) of PMI, USA. By virtue of this all
L&T I’PM long duration courses (L-0, L-1, L-2 & L-3) are pre approved courses as the
eligible courses for fulfilling the pre requisites for writing the certification examination of
PMI, USA. Also specific courses are approved for varying levels of Professional
Development Units (PDUs) for validation of current certification

Disaster Management
In times of national disaster, L&T has always stepped forward to lend a helping hand to a
nation in grief. L&T has provided assistance in terms of donations, volunteers, construction

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material, medical and food supplies to mitigate the effects of such calamities as the Gujarat
earthquake and the Tsunami.

Prayas
'Prayas' in Sanskrit means 'effort' or 'endeavor'. Prayas was established in June 1996 by the
spouses of the employees of the ECC Division of Larsen & Toubro, Chennai, as a social
welfare Non-Government Organization.

With the continued encouragement, guidance and financial assistance of the management of
ECC, Prayas today is a ray of hope for the underprivileged of our society.

Mission
To cure and care by assisting organisations that serve the underprivileged.

How Prayas work

Most organizations and individuals who work among the poor are often constrained by
inadequate funds to carry on with their service. Prayas extends a helping hand to such
organizations and individuals by assessing their needs and meeting at least some of their
basic necessities. Prayas, however, is not just a charitable funding agency, stopping at
donations. Prayas affirms its commitment by an active involvement through various
activities.

Painting Gallery

ECC's Convention Centre houses a great collection of 187 works of art created by a
contemporary Indian artist (Late) D. G. Kulkarni. This reflects the Corporate Value and the
emphasis attached by the organization to fostering art, culture and its commitment to society.

Rehabilitation Efforts

L&T is among the first in the Indian corporate sector to join rescue and rehabilitation efforts
for the victims of natural calamity. When Orissa, Gujarat and Bhutan were ravaged by the
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cyclone, ECC swung into action to provide shelter to the workforce including its employees
and contractors' men and also provide relief to those people who became homeless. L&T
extended assistance in the form of men, machine and money during the earthquake in
Gujarat. L&T redeployed equipment from its various construction sites in Gujarat and sent a
multi-skilled team of engineers for rescue and relief operations.

CSR activities undertaken in 2011

A Billion Acts of Green


Earth Day was celebrated at L&T with a lot of enthusiasm with tree plantation activities
across all the project sites on 22nd April 2011. Tree plantation activities took place in 500
saplings planted at Anpara The staff at the Anpara Project site - Coal Handling Plant, Stage-
D conducted a Green Camp at Ram Lakhan Satyanarayan School, U.P on 15thMarch 2011.
Over 500 saplings were planted at the school premises by the children along with the site
staff.

This event was led by the Project Manager - Mr. B.K. Singh who motivated the students to
plant more and more trees in their surroundings in order to enjoy a pollution free tomorrow.

809 saplings planted at Rourkela The staff at Sinter Plant, SAIL-RSP site organized a tree
plantation program on 28th March 2011. Over 809 saplings were planted in the school
premises of the Government High School, Rourkela and Kalyani Ray Mahavidyalaya,
Hamirpur, Rourkela with the support of the school management and the students. Senior
officials from site including Mr.S.B.Biswas, Mr.A.K.Das and Mr.S.Pattnaik led this activity
along with the site staff. Mrs.Sarita Mall, Vice-Principal- Kalyani Ray Mahavidyalaya along
with the school staff and students enthusiastically participated in planting the saplings.

Prayas Ahmedabad’s kind gesture


on World Wish Day Prayas Trust, Ahmedabad along with Make a Wish Foundation reached
out on 29th April - World Wish Day to the children who have been living with life threatening

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illnesses. The Prayas team fulfilled the wishes of about 10 children between the age of 3 and
18 years, living with life-threatening diseases like HIV, Cancer and Thalassemia. The Prayas
team led by Mrs. Poonam Balachandar, Mrs. Sonal Solanki and Mrs. Roopa Shirolkar were
over joyed with the smile and delight on the faces of these God’s very own kids.

L&T Metro Rail (Hyderabad)

This was the first CSR initiative of L & T. Organizes its first Blood Donation Camp Over 205
employees from L&T group companies and other companies housed in Cyber Towers and
Cyber Gateway at Hyderabad donated blood for children suffering from Thalassemia. Mr. B
V Subba Rao, Head Administration & Corporate Relations, L&T Metro Rail, thanked each
and every person who donated blood for being an abundance of hope, courage and support to
all children suffering from Thalassemia.

Blood Donation Camp at Jamshedpur


L&T’s team at Tata Steel, Jameshpur project site organized a Blood Donation camp at the
“Marine Drive – Fabrication Yard on May 26, 2011 in association with Jamshedpur Blood
Bank. Mr. S. Nandy, Project Manager led this initiative and all the site team covering staff
and workmen enthusiastically participated in the camp. At the end of the camp, 229 units of
blood were collected

Blood donation drive at Delhi Cluster

The Delhi cluster of MMH IC organized a blood donation camp on 12th April 2011. The
event was held in association with Red Cross Society of Delhi at Talkatora Indoor Stadium at
New Delhi. Over 250 staff donated blood at this massive blood donation drive.

Health camp for workmen at Jojobera GU Expansion Project


A health camp for workmen was organized at the Jojobera GU Expansion Project,
Jamshedpur on 10th June 2011. This programme was organized in association with ESI
Hospital, Adityapur, Jamshedpur and the camp was inaugurated by the Project Manager Mr.
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S.K. Ghosh along with the Project Accountant Mr. Prasenjit Mukhopadhyay. Over 168
workmen were screened for various complaints including blood pressure, ECG and general
fitness during this health camp. The workmen were greatly benefited from the physician’s
advice.

L&T stimulate awareness on World Environment Day


With a strong conscience for the environment, L&T has been carrying out initiatives to
preserve ecological balance and to create an enduring, positive impact on the environment,
communities and all members of the public sphere.To commemorate such initiatives and to
thank Nature, MMH IC celebrated “World Environment Day” on June 04, 2011 at HQ
Campus. Concomitant to this years WED Theme, viz „Forests: Nature at Your Service, Video
clips and Posters detailing the significance of Forests in maintaining the ecosystem were
displayed. The event was inaugurated by Mr. D R Ray, Head – MMH IC who lauded the
initiatives of various sites towards reducing Carbon Emissions. Tree Plantation Programme
was organized on 6th June by the staff of APPDCL, Krishnapatinam. Awards were presented
to the deserving workmen.Housekeeping drive was organized at SBPL Project on WED 2011
where all staff participated. This event concluded with tree plantation programme.World
environment day was celebrated on 6th June 2011 at CPP Mahan. All the workmen/staff
gathered and shared their views in making the environment green and healthy.Tree Plantation
Programme was organized on 6th June by the staff of Maithon Thermal Power Plant, Eastern
Region. Project Manager and other staff enthusiastically participated in the plantation drive.

Health First India collects Rs. 45,000 at L&T to fight leprosy


‘Buy a ticket for Rs 20 and support the cause of leprosy’ is the campaign of Health First India
(HFI) who put forth this plea at L&T’s campus from 6th to 10th June 2011.HFI is on a
campaign to raise Rs. 24,86,000 to treat 700 leprosy affected people (each surgery costs Rs

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16,575). Dr.Manjunath and Mr.V.S Ramana flagged off this campaign at ECC on 6th June.
The campaign was also held at L&T Infotec.

Reaching out to 4000 people through bhandara

As a part of L&T’s CSR efforts, the staff at the LDA Housing Project site in Lucknow
organized a mass lunch (bhandara) for the workmen at site and the people of the
neighbouring villages on 7th June, on the occasion of the Bada Mangal festival.The site
organized lunch for over 4000 people including 2500 site workers and 1500 local villagers
who ate joyfully celebrating this auspicious day of Bada Mangal, a day dedicated to Lord
Hanuman observed on Tuesdays in the month of Jyeshta (May – June) largely celebrated in
Uttar Pradesh and nearby regions.

L&T wins GOLDEN PEACOCK Award for Corporate Social


Responsibility

January 12, 2009

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Corporate Communications Department L & T’s Corporate Social initiatives have secured
global recognition, winning the International Golden Peacock award. The award was
presented to L&T at the 4thGlobal Conference on Social Responsibility in Portugal on
February 26, 2009 in the presence of international business personalities, business leaders and
CSR experts. L&T’s maiden CSR report, released last year helped to consolidate the
company’s long CSR track record and was prominently displayed at the function. The Golden
Peacock award for Corporate Social Responsibility has been instituted to encourage
international organizations to accelerate the pace of stakeholder oriented improvement
processes. It is presented annually and requires companies to critically detail the strategy and
philosophy for various initiatives taken to enhance their Triple Bottom Line Performance
along with the evaluation strategy followed for existing initiatives. As a part of the process,
L&T competed with some of India’s best organizations and was assessed by an eminent panel
of juries including International strategists and members of the judiciary. The award is certain
to inspire and encourage our large group of L&T-errs and the CSR team to intensify and
extend their efforts to achieve greater success on all the three fronts – Economic, Social and
Environmental.

CSR POLICY FRAMEWORK

Philosophy

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L&T- Sargent & Lundy Limited fosters a culture of care, trust and continuous learning while
meeting the expectations of - stakeholders and society at large. As a responsible Corporate
Citizen, the Company contributes towards inclusive growth by empowering communities and
accelerating development.
The Company’s CSR Policy framework details the mechanisms for undertaking various
programmes in accordance with section 135 of the Companies Act 2013 for the benefit of the
community.

Themes

The Company will primarily focus on ‘Building India’s Social Infrastructure’, so that
communities have access to water & adequate sanitation facilities, educational opportunities,
better healthcare and sustainable livelihoods, thereby promoting inclusive growth in our
operational areas.
Towards this, the Company shall –
 Implement sustainable CSR Programmes towards ‘Building India’s Social
infrastructure’
 Partner with communities to identify their needs and provide solutions
 Harness innovation and technology driven solutions to address social needs
 Establish high standards of governance in CSR programmes and deliver positive
impact
 Strengthen local NGO’s, institutions through training interventions and building
replicable models
 Ensure implementation of monitoring and evaluation mechanism
 Advocate & support conscious corporate citizenship in partnership with state bodies
and NGO’s
 Contribute to Prime Minister’s national relief fund

As part of its CSR programme which will include verticals comprising, inter alia, of –

 Water – may include but not limited to programmes making safe drinking water
available, conservation and purification of water.

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 Education - may include but not limited to education infrastructure support to
educational Institutions, educational programmes & nurturing talent at various levels.
 Health - may include but not limited to community health centres, mobile medical
vans, dialysis centres, general and specialized health camps and outreach
programmes, centres for elderly / disabled, support to HIV / AIDS programme.
 Skill Development - may include but not limited to vocational training such as skill
building, computer training, women empowerment, support to ITI’s, support to
specially abled (infrastructure support & vocational training), CSTI’s, providing
employability skills at project sites, creating training centres.
 Sanitation & Rural Development
Governance & Technology would be the Key drivers across all these vertical

Budget

 The Board of the Company shall allocate at least 2% of the average net profit (as
defined by section 198 of the Companies Act 2013) during the three preceding
financial years
 The Company may collaborate or pool resources with other entities to undertake CSR
activities
 In case of any surplus arising out of CSR programmes the same shall not form part of
business profits of the Company

Roles & Responsibilities

The CSR Governance structure comprises of the Board, CSR Committee of the Board and the
CSR team.
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The Board:
The Board of Directors of the Company will:
 Approve the CSR Policy of the Company
 Ensure spend of 2% of average net profits
 Disclose the content of the CSR Policy in its report and place the Policy on the
Company’s website as prescribed under Section 135 of the Companies Act 2013 read
with the Companies (Corporate Social Responsibility Policy) Rules, 2014
 Specify reasons in its report for not spending the earmarked amount in case the
Company fails to spend such amount
 The Board will form the CSR Committee in accordance with the requirements of the
Companies Act 2013
CSR Committee of the Board
Responsibility of the CSR Committee:
 Formulate and recommend the CSR Policy to the Board for approval
 Ensure that the social programmes undertaken are aligned to the CSR Policy of the
Company
 Recommend the amount of expenditure to be incurred on CSR programmes
 Constitute transparent monitoring mechanism for ensuring implementation of the
CSR programme
 Allocate the programmes to the CSR Team to implement the same
 Submit quarterly reports to the Board of Directors

CSR Team
Responsibilities of the CSR Team:
 Spread awareness regarding the approved CSR policy

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 Provide guidance to Units CSR teams to ensure that all CSR programmes are aligned
with Company’s CSR policy
 Recommend programmes to be undertaken during the financial year to the CSR
Committee of the Board
 Facilitate effective implementation of CSR policy at all locations
 Promote synergy at all locations and share best practices to achieve desired outcome
for community development
 Develop measurable benchmarks and get the same approved by the CSR Committee

Implementation

 CSR programme will be undertaken by the Company in identified areas. The


Company will undertake need assessments as and when required.
 The time period/duration over which a particular programme will be spread, will
depend on its nature, extent of coverage and the intended impact of the programme
 The Company may enter into partnerships with the government, business partners and
communities to create multiplier effect of its social programmes
 The mode of implementation of CSR programmes will include a combination of
direct implementation and / or through partners such as NGOs, Trusts, academic
institutions, business associates, registered societies etc. The Company will select its
partners after appropriate due diligence.
 The Company may use the services of internal teams, employee volunteers, expert
agencies, consultancy firms etc. wherever required for carrying out base line surveys,
guidance on programme design and implementation, impact assessment surveys etc.
The same shall be part of CSR amount spent in that financial year.

Monitoring & Reporting Framework

At CSR Committee level:

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 The CSR Committee will review the implementation of the CSR programmes on a
quarterly basis and the CSR audit reports periodically, and arrange to share the
Company’s the best practices
 Review the implementation and monitoring mechanism appropriately
 Report to the Board appropriately

Benefits of corporate social responsibility

The potential benefits of CSR to companies include:

 better brand recognition


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 positive business reputation
 increased sales and customer loyalty
 operational costs savings
 better financial performance
 greater ability to attract talent and retain staff
 organisational growth
 easier access to capital

3.2 FINDINGS
1. Wipro’s community initiative focused on certain key developmental issues faced by
the underserved and underprivileged communities of India, formed in the year 2003.

2. It provides a platform to employees to meaningfully engage with disadvantaged


Communities.

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3. Corporate leaders and their general counsels have to give compliance issues a higher
priority as they recognize the risk of increased scrutiny on the legal angle of their
global operations. Companies report legal compliance, making a stronger indicator of
actual working conditions.

4. Sustainability Reporting is emerging as a key vehicle to implement CSR and measure


its progress in organizations. The report focuses on priorities, Allocating finance for
treating CSR as an investment from which returns are expected. Reporting
performance in an open and transparent way so that all can celebrate progress and
identify areas for further action.

5. The companies should optimize available resources by ensuring that efforts are not
duplicated and existing services are strengthened and supplemented as well.

6. There is a need to sensitize corporate and business classes toward evolving a culture
of sustainable development and empathy towards nature and environmental
vulnerable section of the society.

3.3 RECOMMENDATION

1. L&T Company should also come with some women empowerment activity which
would mostly help the women in rural areas.

2. Entrepreneurship skills should be developed among each and every Individual.

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3.4 CONCLUSION

Corporate social responsibility offers manifold benefits both internally and externally to the
companies involved in various projects.
Externally, it creates a positive image amongst the people for its company and earns a special
respect amongst its peers. It creates short term employment opportunities by taking various
projects like construction of parks, schools, etc. Working with keeping in view the interests of
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local community bring a wide range of business benefits. For example, for many businesses,
local customers are an important source of sales. By improving the reputation, one may find
it easier to recruit employees and retain them.
Businesses have a wider impact on the environment also. Plantation and cultivation activities
taken up by L & T are a step towards the same. Recycling used products also acts as a step
towards minimizing wastes.

Internally, it cultivates a sense of loyalty and trust amongst the employees in the
organizational ethics. It improves operational efficiency of the company and is often
accompanied by increases in quality and productivity. More importantly, it serves as a
soothing diversion from the routine workplace practices and gives a feeling of satisfaction
and a meaning to their lives. Employees feel more motivated and thus, are more productive.
Apart from this, CSR helps ensure that the organization comply with regulatory requirements.

3.5 Bibliography

 www.wikipedia.org

 www.larsenandtourbro.com

 www.corporatesocialresponsibility.com

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